Sometimes increases in the wage rate will cause individuals to work more hours. It is also the case that this same increase could cause people to work fewer hours. What is happening to cause this variance?
What will be an ideal response?
This is generally a case of preferences. At higher wages, it is possible to obtain the same level
of consumption as with a lower wage with fewer hours. Those who prefer to have those hours
as leisure may choose to work less.
Economics
You might also like to view...
In a competitive equilibrium, the total consumer surplus must equal the total producer surplus
Indicate whether the statement is true or false
Economics
In the figure above, the elasticity of demand facing the monopoly equals one when it produces ________ units of output
A) h B) j C) k D) none of the above
Economics